Volvo to locate main U.S. parts distribution center in Mississippi

[kscarbel2]

May 13, 2014

Volvo announced on May 12 plans for the company’s new one million square foot Byhalia central parts distribution center in the Gateway Global Logistics Center, a new 1,500 acre industrial park located jointly in Fayette County, Tennessee and Marshall County, Mississippi.

Suppliers from around the world will begin shipping every single Mack, Volvo, and UD truck part, Volvo Construction Machinery part and Volvo Penta marine part used for dealer repairs in the U.S., Canada and Mexico to the new Byhalia central parts distribution center.

The facility, due to be completed in the fourth quarter of this year, is the keystone to Volvo Group's plans to consolidate its North American parts distribution network.

It is located near Norfolk Southern's intermodal terminal in Rossville that opened nearly two years ago.

At the same time, Volvo Group announced the closure of the company’s 196,786 square foot Memphis regional parts distribution center at 4903 Southridge in the Southeast Memphis industrial area.

The new Byhalia central parts distribution center will eventually employ up to 250 people.

Volvo Group is not yet ready to accept job applications, according to project manager Marcus Avenstam.

Volvo Group said that suppliers will ship all Volvo’s “off-market” parts, to be sold for dealer repairs in North America, to the Byhalia central parts distribution center. Currently, parts are shipped from vendors to several warehouse locations across the continent.

Avenstam said that Volvo Group chose the Mississippi location because, “It boiled down to a finite discussion of what is best for Volvo for a 30- to 40- year time frame.”

Avenstam and the executive he reports to, Jan Lundegard, vice president of logistics operations, declined to discuss any incentives Volvo may have received from local or state government in Mississippi.

Volvo determined the Mid-south was the place to be for its new, centralized strategy for distribution.

“If you look at the continent of Canada, the U.S. and Mexico and if you look at the overall logistical structures that exist... we see this as a good spot to be. It’s also basically the parts distribution center for the United States.